Financial Results for the First Half of Fiscal Year Ending March 31, 2013
(Six Months Ended September 30, 2012) <under Japanese GAAP> (Consolidated)
November 9, 2012
Company name : NIKKO COMPANY
ID number : 5343 Stock listing : Nagoya Stock Exchange Second Section
URL : http://www.nikko-company.co.jp/
Representative : Kazuto Futamata, Chief Executive Officer
Contact : Yasuhiro Kurauchi, Chief Financial Officer (Phone: +81-76-276-2121)
Scheduled date to submit Securities Report : November 13, 2012
Scheduled date to begin dividend payments : Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting: None
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months Ended September 30, 2012 (April 1, 2012 - September 30, 2012)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％

Millions of yen
Six months ended
Sept. 30, 2012

7,977

Ordinary income％Millions of yen

Millions of yen

Net income％Millions of yen％

(11.9)(650)-(658)-(1,339)--42-

31-241-

Six months ended
9,056
Sept. 30, 2011
Note: Comprehensive income (Millions of yen):Sept. 30, 2012: (1,390) ( -%)Net income pershare

Sept. 30, 2011: 240 (-%)

Diluted net income
per share
Yen

Yen

Six months ended
Sept. 30, 2012

(71.49)-Six months ended
Sept. 30, 2011

12.86

-

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Net assets per share

Millions of yen%

Yen

As of Sept. 30, 2012

11,925

2,232

18.7

119.19As of Mar. 31, 201213,1733,623

27.5

193.41

Reference:

Shareholders' equity (Millions of yen):

Sept 30, 2012: 2,232

Mar. 31, 2011: 3,623

2. Dividends(Record date)1Q-end2Q-endYen

Year ended Mar. 31, 2012
Year ending Mar. 31, 2013
Year ending Mar. 31, 2013
(forecast)
Notes: Revision of dividend forecast during the period: None

Dividend per share
3Q-end
Yen
Yen
0.00
0.00

Year-end-

Annual
Yen

Yen

0.00

0.00

0.00

0.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2013 (April 1, 2012 - March 31, 2013)(Percentage figures represent changes from the same period of the previous year.)
Net income perNet sales
Operating income
Ordinary income
Net income
share
Full year

Millions of yen%

Millions of yen%

16,600

(9.0)

(800)

-

Millions of yen(800)

Notes: Revision of projected consolidated performance during the period: Yes

1%

Millions of yen%

Yen-(1,500)-(80.08).
4. Notes(1) Changes in significant subsidiaries (changes in specified subsidiaries accompanying changes in the scope of consolidation) during
the period: None
New: — companies (Company name:)
Eliminated: — companies (Company name:)(2) Application of special accounting methods for quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, or restatement
1) Changes in accounting policies due to changes in consolidated accounting methods: Yes
2) Changes other than 1) above: None
3) Changes in accounting estimates: Yes
4) Restatement: None
Note: The depreciation method has been changed from the first quarter of this fiscal year and this change is applicable to “a casewhen it is difficult to distinguish between a change in an accounting policy and a change in an accounting estimate.” For furtherinformation, please refer to Changes in accounting policies, estimates, and restatement in “Summary Information (Notes)”.
(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Sept. 30, 2012:
19,572,000 sharesMar. 31, 2012:
2) Number of treasury stock at the end of the period
Sept. 30, 2012:
840,772 sharesMar. 31, 2012:
3) Average number of shares issued during the period (cumulative; consolidated)
Six months ended Sept. 30, 2012: 18,732,443 shares
Six months ended Sept. 30, 2011:

19,572,000 shares
838,142 shares
18,735,474 shares*Information regarding the implementation of quarterly review procedures
The current quarterly financial statements are exempted from quarterly review procedures based on the Financial Instruments andExchange Law. At the time of disclosure, we have not completed the review process for these consolidated statements.
*Appropriate use of business forecasts, other special items
Forecasts regarding future results in these materials are based on assumptions judged to be valid and information available to theCompany at the time the materials were created. Actual results may differ significantly from these forecasts for a number of reasons.

21. Summary Information (Notes)(1) Overview of Changes in Consolidated Subsidiaries
No reportable information(2) Overview of Adoption of Special Accounting Methods
No reportable information(3) Changes in accounting principles, accounting estimates and retrospective restatement for consolidated(a change in an accounting policy which is difficult to distinguish from a change in an accounting estimate)
At the Company and its domestic consolidated subsidiaries, the depreciation method for Property and equipment acquired on orafter April 1, 2012 had been changed to method under the revised act from the first quarter of this fiscal year. The impact of thischange to income and loss is immaterial.

32. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheet

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
OtherAllowance for doubtful accounts
Total current assetsNoncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, netLand
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
OtherAllowance for investment loss
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4FY03/2012(As of Mar.31,2012)(Millions of yen)First Half of FY03/2013(As of Sep. 30,2012)

1,131
3,203
2,197
731
317
357
1148(117)
7,970

1,211
2,428
2,213
644
358
360
0132
(25)
7,323

6,783
(4,584)
2,198
1,261
6,995
(6,237)
758
4,218
244

6,713
(4,643)
2,070
1,261
6,740
(6,289)
450
3,782
129

595
539
―
(394)
740
5,202
13,173

550
707
(38)
(529)
690
4,601
11,925

3,370
1,199
328
5385
128
1,249
6,414

2,950
1,534
361
39―
394
1,397
6,676

1,441
1,229
104
359
3,135
9,549

1,251
1,30130
433
3,016
9,693

3,200
1,321(259)
(334)
3,927

3,200
1,321(1,598)
(335)
2,587

(173)
(130)
(303)
3,623
13,173

(218)
(136)
(354)
2,232
11,925

(2) Consolidated quarterly statements of income
and consolidated quarterly statements of comprehensive incomeConsolidated quarterly statements of income(Millions of yen)First half of FY03/2012
First half of FY03/2013(Apr.1,2011-Sept.30,2011) (Apr.1,2012-Sept.30,2012)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)

9,056
6,337
2,718
2,676
42

7,977
5,728
2,248
2,898(650)01241540112942252316653124111450(658)

Extraordinary Income
Gain on sales of noncurrent assets
Gain on abolishment of retirement benefit plan
Total extraordinary Income

0283
283―――

Extraordinary loss
Loss on retirement of noncurrent assets
Impairment loss
Provision of allowance for investment loss
Other
Total extraordinary losses
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Income (loss) before minolity inretests
Net income (loss)

741―
15126321022241241

9603
38―
650(1,309)
29029(1,339)(1,339)Non-operating income
Interest income
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income (loss)

5

Consolidated quarterly statements of comprehensive income

Income(loss) before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Other comprehensive income
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

6

First half of FY03/2012(Apr.1,2011-Sept.30,2011)(Millions of yen)First half of FY03/2013(Apr.1,2012-Sept.30,2012)

241(1,339)

9(9)
(0)
240

(45)
(5)
(51)
(1,390)240(1,390)――(3) Consolidated Statements of Cash Flows(Millions of yen)First half of FY03/2012
First half of FY03/2013(Apr.1,2011-Sept.30,2011) (Apr.1,2012-Sept.30,2012)
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for retirement benefits
Increase (decrease) in allowance for investment loss
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

263
264
41
11(161)1(228)―(6)25(0)
781(1,309)
254
603
43(85)
266
71
38(8)
24―
9643

0

1(464)
247(75)96(25)(12)(22)

20(414)
(68)
90
8(24)
(48)
25

Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Other, net
Net cash provided by (used in) investment activities

(81)
52
(106)
(4)
(139)

(74)
175
(81)
2
21

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

77
50(86)
(63)
(0)
(22)
(3)
(187)
1,287
1,100

334
―(157)
(38)
(0)
137
(2)
182
924
1,106

7

(4) Going Concern Assumption
No reportable information.
(5) Segment Information[Segment Information]
Ⅰ First Half of FY03/2012 (Apr. 1, 2011 – Sept. 30, 2011)
1. Information related to net sales and profit or loss for each reportable segment

Housing &EnvironmentalEquipment

Tabletop

ElectroCeramics

Other(Note 1)(Millions of yen, rounded down)Amounts
shown onquarterly
Segment
Adjustment
consolidated
total(Note2)statements ofincome

Net sales(1)Sales to Outside
5,413
2,525
1,084
33
9,056
9,056
Customers(2)Intersegment sales
or Transfers
Total
5,413
2,525
1,084
33
9,056
9,056
Segment profit (loss)(Operating income (loss))
384
86
(131)
(10)
329
(287)
42
Notes: 1. The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Segment income adjustment of 287 million yen consists of expenses, such as general administrative expenses, andresearch and development costs that do not belong to the reportable segments.
2. Information regarding impairment loss on fixed assets and goodwill by reportable segment
During the subject six-month period, impairment loss amounted to 41 million yen in the Electro-Ceramics Division.
Ⅱ First Half of FY03/2013 (Apr. 1, 2012 – Sept. 30, 2012)
1. Information related to net sales and profit or loss for each reportable segment

Housing &Environmental
Equipment

Tabletop

ElectroCeramics

Other(Note 1)(Millions of yen, rounded down)Amounts
shown onSegment
Adjustment
quarterly
total(Note 2)
consolidated
statements ofincome

Net sales(1)Sales to Outside
4,709
2,461795
11
7,977
7,977
Customers(2)Intersegment sales
or Transfers
Total
4,709
2,461
795
11
7,977
7,977
Segment profit (loss)(Operating income (loss))(182)
27(188)2(342)(308)(650)
Notes: 1. The “Other” category indicated businesses not included in reporting segments, including sales of other products.
2. Segment income adjustment of 308 million yen consists of expenses, such as general administrative expenses, andresearch and development costs that do not belong to the reportable segments.
2. Information regarding impairment loss on fixed assets and goodwill by reportable segment
During the subject six-month period, impairment loss amounted to 603 million yen in the Electro-Ceramics Division.
(6) Significant changes in Shareholder’s Equity
No reportable information.

83. Supplementary Information(1) Sales by Segment

Industry Segment(Millions of yen, rounded down)First Half of FY03/2012(Apr. 1, 2011 – Sept. 30, 2011)

First Half of FY03/2013(Apr. 1, 2012 – Sept. 30, 2012)

FY03/2012(Apr. 1, 2011 - Mar. 31, 2012)

Net Sales

Percent of
Net Sales

Net Sales

Percent of
Net Sales

Net Sales

Percent of
Net Sales

Housing & Environmental
Equipment

5,413

59.8%

4,709

59.0%

10,835

59.4%

Tabletop

2,525

27.9

2,461

30.9

5,245

28.8

Electro- Ceramics

1,084

12.0

795

10.0

2,096

11.5

Other

33

0.3

110.1

62

0.3

Total

9,056

100.0

7,977

100.0

18,239100.0

Notes:
1. Amounts are converted to sales prices.
2. Amounts do not include consumption taxes.
3. The following table indicates the Company’s overseas sales share by industry segment and percentage figures represent
overseas sales ratio.
(Millions of yen, rounded down)First Half of FY03/2012(Apr. 1, 2011- Sept. 30, 2011)

First Half of FY03/2013(Apr. 1, 2012- Sept. 30, 2012)

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

Overseas Sales
Ratio

Overseas
Sales

--%

00.0%

-

Tabletop

722

28.6%

616

25.1%

1,289

24.6

Electro- Ceramics

346

32.0

228

28.7

620

29.6

Total

1,069

11.8

845

10.6

1,910

10.5

Industry SegmentHousing & Environmental
Equipment

9FY03/2012(Apr. 1, 2011 - Mar. 31, 2012)
Overseas Sales
Ratio-%